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SEC Approves New Conflict-of-Interest Rules for Brokers Using AI



The SEC has approved changes to rules governing the use of optimization functions by brokers, aiming to prohibit their use of data analytics tools for their benefit. The changes could constitute a conflict of interest in investor interactions and communications. The proposal passed in a 3-2 vote along party lines, with dissenting votes from Commissioners Peirce and Uyeda.
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